Sony London fire cost $49.5 mil

Arson attack destroyed up to 30 mil discs

The cost of property destroyed in an arson attack at Sony Digital Audio Disc Corp.’s London distribution center are in excess of £30 million ($49.5 million), according to initial estimates, says SDADC, which resumed business on Monday.

The Aug. 8 fire, sparked during riots in the city, consumed up to 30 million discs from independent film and music companies.

“Within an hour after the incident, Sony DADC’s Disaster Recovery Plan was in place and enabled a crisis team to start action,” said Darren Houghton, managing director of U.K. distribution. He said not a single order or electronic data interchange had been lost and all IT systems and services were up and running. The crisis team found alternative warehousing at two sites. All Sony DADC permanent staff will move to one of these sites.

As reported in Daily Variety on Aug. 22, Sony will manage business out of a warehouse in Hoddesdon, Hertfordshire, just 10 miles from the original center.

Some 80% of volume will be distributed from this hub, which was operational from Monday.

A second facility in Buckinghamshire, approximately 40 miles from the Enfield location, will temporarily operate the other 20% of the work services for Sony Pictures Home Entertainment.

“The level of support we have received from our customers, Sony affiliate companies, local distribution centers and other companies from within the industry has been remarkable,” said Houghton. “Without it, such a fast reaction to market demands would not have been achieved.”